Lamar Advertising Gross Profit vs. Profit Margin

6LA Stock  EUR 117.00  2.60  2.17%   
Considering the key profitability indicators obtained from Lamar Advertising's historical financial statements, Lamar Advertising may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Lamar Advertising's ability to earn profits and add value for shareholders.
For Lamar Advertising profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lamar Advertising to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lamar Advertising utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lamar Advertising's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lamar Advertising over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Lamar Stock please use our How to Invest in Lamar Advertising guide.
Please note, there is a significant difference between Lamar Advertising's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lamar Advertising is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lamar Advertising's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Lamar Advertising Profit Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lamar Advertising's current stock value. Our valuation model uses many indicators to compare Lamar Advertising value to that of its competitors to determine the firm's financial worth.
Lamar Advertising is rated fourth in gross profit category among its peers. It is rated below average in profit margin category among its peers . The ratio of Gross Profit to Profit Margin for Lamar Advertising is about  6,356,392,758 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lamar Advertising's earnings, one of the primary drivers of an investment's value.

Lamar Profit Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Lamar Advertising

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.37 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Lamar Advertising

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.22 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Lamar Profit Margin Comparison

Lamar Advertising is rated fifth in profit margin category among its peers.

Lamar Advertising Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lamar Advertising, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lamar Advertising will eventually generate negative long term returns. The profitability progress is the general direction of Lamar Advertising's change in net profit over the period of time. It can combine multiple indicators of Lamar Advertising, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Founded in 1902, La mar Advertising is one of the largest outdoor advertising companies in North America, with approximately 360,000 displays across the United States and Canada. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 3,100 displays. LAMAR ADVERTISING operates under REIT - Diversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 3600 people.

Lamar Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Lamar Advertising. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lamar Advertising position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lamar Advertising's important profitability drivers and their relationship over time.

Use Lamar Advertising in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lamar Advertising position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lamar Advertising will appreciate offsetting losses from the drop in the long position's value.

Lamar Advertising Pair Trading

Lamar Advertising Pair Trading Analysis

The ability to find closely correlated positions to Lamar Advertising could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lamar Advertising when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lamar Advertising - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lamar Advertising to buy it.
The correlation of Lamar Advertising is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lamar Advertising moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lamar Advertising moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lamar Advertising can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Lamar Advertising position

In addition to having Lamar Advertising in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Money Funds Thematic Idea Now

Money Funds
Money Funds Theme
Funds or Etfs that invest most if their asset in companies from financial sector such as commercial banks, insurance companies, investment funds, and real estate. The Money Funds theme has 32 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Money Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Lamar Stock

When determining whether Lamar Advertising is a strong investment it is important to analyze Lamar Advertising's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lamar Advertising's future performance. For an informed investment choice regarding Lamar Stock, refer to the following important reports:
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For more detail on how to invest in Lamar Stock please use our How to Invest in Lamar Advertising guide.
You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
To fully project Lamar Advertising's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lamar Advertising at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Lamar Advertising's income statement, its balance sheet, and the statement of cash flows.
Potential Lamar Advertising investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Lamar Advertising investors may work on each financial statement separately, they are all related. The changes in Lamar Advertising's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lamar Advertising's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.